General Announcement for PLC
05/06/2020OTHERS BOUSTEAD HEAVY INDUSTRIES CORPORATION BERHAD ("BHIC" OR "THE COMPANY") - RECEIPT OF NOTICE OF LIQUIDATED DAMAGES CLAIM FROM THE MINISTRY OF DEFENCE MALAYSIA
BOUSTEAD HEAVY INDUSTRIES CORPORATION BHD |
Type | Announcement |
Subject | OTHERS |
Description | BOUSTEAD HEAVY INDUSTRIES CORPORATION BERHAD ("BHIC" OR "THE COMPANY") - RECEIPT OF NOTICE OF LIQUIDATED DAMAGES CLAIM FROM THE MINISTRY OF DEFENCE MALAYSIA |
The Company wishes to announce that on 29 May 2020, Boustead DCNS Naval Corporation Sdn. Bhd. (BDNC) received a letter from the Ministry of Defence (MINDEF) claiming Liquidated Damages amounting to RM11,647,812.00 and EUR6,461,195.09 (the Claim) for the breach of obligations under the first supplemental contract of the In-Service Support for two (2) units of Prime Minister-Class for the Royal Malaysian Navy Submarines Contract (Extended ISS Contract). BDNC is a joint venture company between BHIC Defence Technologies Sdn. Bhd. (60%), a wholly owned subsidiary of BHIC and Naval Group (40%). The Extended ISS Contract was awarded to BDNC by MINDEF through the Additional Letter of Acceptance dated 29 September 2015. The announcement was made on 15 October 2015. The Board of BHIC is of the opinion that BDNC has adequate bases to defend and appeal against the Claim. BDNC is currently responding to the demand. The Claim is not expected to have any material financial impact on BHIC Group for the financial year ending 31 December 2020. BHIC Group has recognised share of losses of interest in BDNC when applying the equity method up to its interest in the joint venture.
This announcement is dated 5 June 2020. |
Announcement Info
Company Name | BOUSTEAD HEAVY INDUSTRIES CORPORATION BHD |
Stock Name | BHIC |
Date Announced | 05 Jun 2020 |
Category | General Announcement for PLC |
Reference Number | GA1-05062020-00122 |